The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Callon Petroleum Co's current ratio for the quarter that ended in Dec. 2023 was 0.39.
Callon Petroleum Co has a current ratio of 0.39. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Callon Petroleum Co has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Callon Petroleum Co's Current Ratio or its related term are showing as below:
CPE'
s Current Ratio Range Over the Past 10 Years
Min: 0.34 Med: 0.52 Max: 5.51
Current: 0.39
During the past 13 years, Callon Petroleum Co's highest Current Ratio was 5.51. The lowest was 0.34. And the median was 0.52.
CPE's Current Ratio is not ranked
in the Oil & Gas industry.
Industry Median: 1.33
vs CPE: 0.39
Callon Petroleum Co Current Ratio Historical Data
The historical data trend for Callon Petroleum Co's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Callon Petroleum Co's Current Ratio
For the Oil & Gas E&P subindustry, Callon Petroleum Co's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Callon Petroleum Co's Current Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Callon Petroleum Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Callon Petroleum Co's Current Ratio falls into.
Callon Petroleum Co Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Callon Petroleum Co's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Callon Petroleum Co (NYSE:CPE) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Callon Petroleum Co Current Ratio Related Terms
Thank you for viewing the detailed overview of Callon Petroleum Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Callon Petroleum Co (Callon Petroleum Co) Business Description
Callon Petroleum Company engages in the exploration, development, acquisition, and production of oil and natural gas. Activities are primarily conducted in the Permian Basin region of West Texas and southeastern New Mexico. Callon relies heavily on the latest horizontal production techniques to extract hydrocarbon products from its assets, with crude oil accounting for over half of production. Historically, a handful of marketing and trading companies have accounted for the majority of the sales for Callon's oil and gas production. Assets are acquired through the drilling of emerging zones on existing acreage but also by acquiring additional locations through leasehold purchases, leasing programs, joint ventures, and asset swaps.
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